Step-by-Step Guide: How Utilities Can Reduce Non-Revenue Water

A blog post on how Utilities can address the challenge of NRW.

THOUGHT PAPEREDUCATIONAL

Rimashree

5/26/20254 min read

orange and black metal pipe
orange and black metal pipe

Introduction: The Costly Challenge Of NRW

Water is a precious resource, yet utilities worldwide lose billions of liters daily due to Non-Revenue-Water (NRW) – water that is produced but never billed due to leaks, theft, or metering inaccuracies. The World Bank estimates that globally, NRW accounts for 25%-35% of water supply, with some developing regions seeing rates as high as 50%-60%. In India alone, NRW levels can exceed 40% in some cities, resulting in huge financial losses and water scarcity risks.

At Shanta Colibri, we’ve partnered with utilities across India to implement smart water management solutions that dramatically reduce NRW, optimize distribution, and ensure sustainable water usage. In this comprehensive guide we’ll walk you through the strategic steps utilities can take to identify, measure, and minimize NRW using SCADA, IoT, and smart metering technologies.

Understanding Non-Revenue Water

Before diving into solutions, it's essential to understand what constitutes NRW. Non-revenue water includes:

  1. Physical losses (leakages from pipes, joints, and storage tanks)

  2. Commercial losses (meter inaccuracies, data handling errors, and water theft)

  3. Unbilled authorized consumption (water used for firefighting or provided free to certain communities)

Step 1: Conduct a Comprehensive Water Audit

The first step before solving NRW, you need to identify exactly where the losses are happening and how. A water audit helps utilities:

1. Map water supply from source to end-user.

2. Identify discrepancies between production and billing.

3. Pinpoint high risk leakage zones.

Pro Tip: Use IoT-enabled sensors to monitor real-time water flow and detect unusual patterns instantly.

Step 2: Detect and Repair Physical Leakages

Physical losses typically account for the largest portion of NRW. Modern detection techniques include:

1. Acoustic leak detection: Using sonic equipment to detect underground leaks

2. Pressure monitoring: Identifying sudden changes in pressure that indicate leaks

3. Satellite and drone imaging: Leveraging thermal technology to identify subsurface water

4. Smart sensor networks: Deploying IoT sensors throughout the distribution system

Our work with PHED demonstrated that systematic leak detection and repair reduced physical losses by 18% within the first six months of implementation.

Step 3: Implement District Metered Areas (DMA) for Leak Detection

Creating District Metered Areas (DMAs) within a water supply network helps utilities isolate sections for monitoring. This enables:

1. Faster leak detection and repair.

2. Better pressure management, reducing pipe bursts.

3. Improved demand forecasting for efficient supply distribution.

Step 4: Upgrade Metering Infrastructure

Commercial losses often stem from inaccurate or manipulated meters. Addressing this requires:

1. Meter accuracy testing: Regular calibration and testing of existing meters

2. Smart meter installation: Deploying AMI (Advanced Metering Infrastructure)

3. Tamper-proof designs: Installing meters with anti-tampering mechanisms

4. Remote reading capabilities: Implementing automatic reading to reduce human error

Step 5: Use of SCADA System for Real Time monitoring

Supervisory Control and Data Acquisition (SCADA) systems allow utilities to:

1. Remotely monitor water distribution network

2. Identify and responds to leaks in time

3. Optimize pump operations to reduce energy waste.

A well-integrated SCADA system provides complete visibility into the entire water network, reducing NRW by improving operational efficiency.

Step 6: Leverage AI & Data Analytics for Predictive Maintenance

Preventing water loss isn’t just about fixing leaks—it’s about predicting failures before they happen. AI-driven analytics can:

1. Analyse consumption trends to detect irregularities

2. Predict pipe failures using historical data & machine learning

3. Enable proactive maintenance, reducing emergency repairs

At Shanta Colibri, we use AI-powered analytics to provide utilities with predictive insights, helping them stay ahead of potential issues.

Step 7: Develop a Pressure Management Strategy

Excessive pressure in water distribution systems increases leakage rates and pipe failures:

1. Pressure zone establishment: Creating distinct pressure zones based on topography

2. Pressure Reducing Valves (PRVs): Installing and properly configuring PRVs

3. Time-modulated pressure: Reducing pressure during low-demand periods

4. Dynamic pressure adjustment: Using real-time data to optimize pressure levels

Step 8: Implement Administrative and Policy Reforms

Technology alone isn't enough. Operational changes are also necessary:

1. Staff training: Educating teams on NRW reduction strategies and technologies

2. Performance incentives: Creating reward systems for NRW reduction targets

3. Billing system improvements: Streamlining billing and collection processes

4. Illegal connection amnesty programs: Converting unauthorized connections to legitimate ones

Step 9: Establish an Ongoing Asset Management Plan

Infrastructure deterioration is a significant contributor to NRW:

1. Asset condition assessment: Regularly evaluating the state of your infrastructure

2. Replacement prioritization: Using data to identify high-risk assets for replacement

3. Preventative maintenance: Implementing scheduled maintenance protocols

4. Capital improvement planning: Developing long-term investment strategies for infrastructure renewal

Step 10: Educate Consumers & Promote Water Conservation

While technology plays a major role in NRW reduction, consumer awareness is equally important. Utilities should:

1. Educate users on detecting household leaks

2. Implement tiered pricing models to encourage responsible usage

3. Provide digital consumption dashboards for transparency

Smart meters with consumer apps allow households to track usage and get notified of potential leaks, fostering community-driven conservation.

The Future of NRW Reduction: Smart Water Networks

Reducing Non-Revenue Water (NRW) isn’t just a one-time fix—it’s an ongoing commitment that demands expertise, investment, and innovation. Utilities that take on this challenge don’t just boost their financial performance; they become key players in water conservation and sustainability. As water demand surges and climate challenges intensify, adopting smart water infrastructure is no longer optional—it’s essential.

At Shanta Colibri, we are shaping the future of water management with cutting-edge SCADA, IoT, and AI solutions. Our data-driven strategies help utilities not only prevent revenue loss but also create resilient, efficient, and equitable water networks. If you're ready to tackle NRW and drive meaningful change, our comprehensive assessment services will identify your biggest opportunities for improvement. Together, let’s build a smarter, water-secure future—where every drop counts.

Blog Post by Rimashree

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